Retailers review IT investment

Shops move on after chip-and-PIN, research shows

Using technology to increase productivity will drive IT spending by the UK's top 100 retailers in 2006, research shows.

In 2005 security was the main IT priority for retailers, but as most have now completed chip-and-PIN projects they are looking to reallocate IT budget to other parts of the business, says the fourth annual IT in retail report from retail consultancy Martec International and Microsoft.

The three greatest growth areas since the research was first published in 2002, are e-procurement which has risen by 32 per cent, time attendance software which is up 20 per cent and marketing applications which have increased 16 per cent.

Last year, almost a third of retailers said they were concentrating on in-store systems including chip-and-PIN-compliant till systems.

But this year's research says in-store investment has now dropped from 31 to 27 per cent, corresponding to increased interest in productivity-focused technology.

‘Retailers that plan to implement chip and Pin have weathered the storm of last year’s deadline, said Fran Riseley, senior consultant at Martec International.

‘Our research shows evidence that they are investing their IT budgets in technologies that are enabling them to differentiate from their competitors, drive down costs and improve customer service.’